The progressive period birthed the cancerous growth of the welfare/warfare state, fake capitalism, the middle way, neomercantilism, and the corporate state. Morgan and Rockefeller men warred with each other over many issues and many generations. Effective competition was attacked as government attempted to cartelize business.

3 of 8 from Murray Rothbard’s 20th Century American Economic History lecture series.

00:00
but I’ll get the progressivism Tryon
00:03
title progressivism and the Triple
00:04
Alliance government as cart Eliezer and
00:11
and just as I believe course I mentioned
00:14
when I started last night that uh I
00:18
don’t believe that big business monopoly
00:22
in quotes grew up out of the free market
00:23
government had to combat it
00:24
quite the contrary business was doing
00:26
very well on its own with monopolies
00:29
collapsing and big business being very
00:31
progressive it was correct sense and now
00:35
we have a new system I mean being
00:36
opposed upon it progressive era the
00:39
government functioning as a giant
00:41
eliezer and the reason I saw the
00:45
progressive period is very important I
00:47
think really a progressive period is us
00:48
like we are Lee we are the enemy we met
00:51
the enemy near us the famous joke the
00:55
the we are lebryk we’re living in a
00:57
progressive period really we’re living
00:58
in a more system of systematic more
01:01
developed form of it but really at the
01:02
embryo of all the stuff that we’re
01:04
living in all my adult or agencies in
01:06
social warfare all the rest of it
01:08
including war mobilization really starts
01:11
the progressive period and continues on
01:12
from grows and strengthens and develop
01:15
some sort of a cancerous growth this of
01:17
course is very valued for you discussion
01:29
aims for I sort of vacillate here in
01:32
there between what to call it
01:34
so Clos the middle way or the third way
01:37
I can call it state monopoly capitalism
01:40
you can call it state capitalism for the
01:42
corporate state progressivism that makes
01:44
the economy in the welfare warfare state
01:48
do nationalism in freedom I like the
01:52
word corporate state answer you can ring
01:54
to it alright also yeah no snow fits in
01:58
very nicely with of course the stock
02:00
Okoboji going
02:06
and also another some other phrase of
02:09
the military educational industrial
02:11
complex is the garrisons thing it’s over
02:13
when some needle mercantilism almost is
02:16
a wage you can look at what you do then
02:20
essentially not only cartelize but you
02:26
replace these these disorderly in quotes
02:29
functions of the market a voluntary
02:30
action by a strong central government
02:32
big government had it usually by a
02:35
strong leader known as president united
02:38
states Luce in pulling furor in Germany
02:42
well these are turns from leaders purely
02:45
their crying I want something and you
02:48
have a strong government staff also the
02:50
great experts and technicians recruited
02:52
from the new intellectuals of
02:53
professional electrodes within
02:54
proliferating as we mentioned before to
02:57
plan the economy to subsidize it
02:59
regulate it push people around tell them
03:02
what to do tell them not the vitamins
03:04
are too weak vitamins or whatever those
03:07
are the great functions they perform in
03:10
conjunction with hoo-hoos which is the
03:11
Triple Alliance Triple Alliance in my
03:13
view various segments of big business
03:15
and Christos who couldn’t make the
03:17
monopoly on the market it’s progressive
03:22
intellectuals who couldn’t look estat us
03:24
privileges walk it goes with the state
03:28
apparatus labor union is a mystical
03:34
responsible labor union ism symbolized
03:36
by the AF of l-cio certainly by the aid
03:40
of a vow you might have some arguments
03:42
about the sea only go any right to
03:46
impose that in this system under the
03:48
gong his name mentioned before of
03:50
anti-monopoly you know the guise of
03:51
human welfare humanism etc stuff with a
03:55
come and go the public interest warfare
03:57
so incidentally about mercantilism it’s
04:02
always been musingly about marking laws
04:03
I really believe this is a crude essence
04:06
of mercantilism
04:08
in the industrial era it’s amusing if
04:11
I’m American listen those people many
04:13
economists looking at mercantilism say
04:14
well yeah it’s irrational cuz you look
04:16
at it I say here these guys that they’re
04:18
subsidizing exports and also subsidized
04:21
imports they’re there they’re claiming
04:22
they had that later in sports and
04:24
pushing exports yet they don’t want to
04:25
buy things from abroad this is crazy and
04:28
I’m all sorts of classical economic
04:29
analyses showing the the idiocy of
04:32
mercantilism and so forth so on probably
04:34
one that is it’s only irrational from
04:35
the point of view of logic or economic
04:38
theory over the consumer it’s not a rash
04:42
on the point of the guys are getting
04:43
subsidized advise we’re making making it
04:45
an assistive who are the export
04:47
industries would be subsidizing the
04:48
import domestic industries are being
04:50
protected among power so you have a
04:52
joint and joint alliance to speak of the
04:54
export and the interests of and the
04:56
domestic interests both of whom are
04:58
being subsidized by the system at the
05:00
expense of the lowly consumer and tax
05:02
payer it’s the same thing with the same
05:06
things the afar program which I’m
05:09
leaping ahead was a beautiful example
05:10
with so-called high rationality in
05:13
action you have a farm program which
05:15
which starts with Herbert Hoover in
05:18
January March 1929 and continues on
05:22
through Roosevelt forcing from then on
05:23
if you look at the fall program the
05:25
point view rationality seems like total
05:26
lunacy you have a situation where for
05:30
example government is paying farmers not
05:31
to produce leader common paying of the
05:34
produce less or produce nothing and have
05:36
a soil bank and way of life a lower
05:38
paying under a strict production at the
05:40
very same time another division of the
05:42
form of Agriculture down the hall is
05:43
paying the money to irrigate the
05:47
subsidizing that have them do like a
05:48
cultural machinery newton irrigation and
05:51
fertilizer techniques
05:52
paying them to produce more now this
05:55
looks like economic insanity in one hand
05:56
yeah the department agriculture 1 1
05:59
division paying farmers to produce less
06:01
we the other hand you have another
06:02
division paying to produce more we
06:03
sounds crazy right
06:04
it’s not crazy it’s not crazy from two
06:07
points of view that crazy inform you the
06:08
power of agriculture has two huge
06:10
division of your bureaucratic divisions
06:12
happily you know you’re paying money for
06:14
this under the complaint and for the
06:17
farmers who get paid both ways for us to
06:19
pay not to produce less
06:21
they’re mean they’re raking in it that’s
06:24
fantastic which I could be paid a bit
06:25
more and abuse so for the fellow farmers
06:31
usually force the big farmers they’re
06:34
getting there there’s a big bonanza but
06:36
a taxpayer and the consumer voice is
06:39
irrational yeah it’s pretty much what
06:57
might happen while they being paying out
07:06
the producer they had to replace welcome
07:33
Arkansas was the old market lost by the
07:34
way so I mentioned the recommend for
07:36
Edgar Prentiss book I’m working the Old
07:39
Market was were very frank one of the
07:41
things about the old mercantilism they
07:42
didn’t have to worry about elections
07:43
about the votes about PR and it sort of
07:45
Madison Avenue techniques they laid it
07:47
on the line and they didn’t they their
07:50
view of a masters of the English working
07:52
masses for example is very frankly but
07:54
when you pet it this thing was working
07:56
list wrote brother labor has called a
08:01
capital material law and under Justin
08:03
committed into the hands of supreme
08:05
authority and whose prudence in this
08:08
position it is to improve managed and
08:10
passionate to more of us advantage so
08:16
there’s no no problem about about common
08:18
good general welfare and that sort of
08:20
stuff none of that nonsense in the
08:22
market list period and now we have a
08:23
situation we have democracy or voting we
08:26
have classical liberalism which one of
08:29
the great pitches of classical
08:30
liberalism wasn’t the woods
08:31
with bring prosperity and increased
08:33
sense of living in scepter of every
08:34
money as Sonny had to appeal the masses
08:38
for this new rhetoric the people of them
08:40
has really more humanitarian more
08:42
general welfare e that’s a word
08:44
emily’s any fair but you need is i so
08:49
you need two things a liberal i’d like
08:50
jewels or court according Winchell’s to
08:53
propound the virtues of the system to
08:56
weave apologetics or and you need
08:58
responsible labor unions to keep the
09:00
workers in line in case they get a
09:01
little feisty fortunately they had a
09:06
model both both those really handle
09:08
modeling i think we’ve touched on this
09:09
before just actually Bismarck’s Germany
09:12
Russia and Germany late nineteenth
09:14
century
09:15
first of all bismarck pioneer an estate
09:17
car elimination the idea of a state
09:18
forcing industries in the cartels and in
09:25
restricting production and raising
09:26
prices when they did that and buying the
09:28
masses or fat social welfare programs
09:30
with with with social insurance will
09:33
sort unemployment insurance health
09:35
insurance most of it not only buying
09:39
them off but also Carter lies in between
09:40
when you raise the cost I mentioned
09:42
before oil firms in the industry you
09:44
Clark you’re paralyzed don’t you enable
09:46
them it may be one raise price on top of
09:47
it I praise them after the and then to
10:03
protect this to ensure that Germany of
10:05
course is not going to be out competed
10:07
if you’re raising the prices of strictly
10:08
productions of the German Austrian
10:09
machine particularly has foreign
10:12
competition you have that very high
10:13
tariffs the insulate the German industry
10:17
from from foreign competition which you
10:19
had does more consistently and so a
10:23
protective tariffs I was extremely
10:24
important to the German cartel systems
10:27
it’s all linked together oh and the say
10:31
you have the world the original welfare
10:33
state program which which by again by
10:35
the pointing in the by increasing
10:36
builders cost necessitated the Cardinals
10:39
ation will help the loyal partner nation
10:41
also along with us came the pro pro you
10:44
policy building up responsible labor
10:46
unions in Germany also raising costs for
10:48
everybody allowing this kind of hard
10:49
ovation to take place all the expense of
10:52
course of the German consumer and was
10:53
unorganized and as I pointed out the
10:58
second method of doing this the way the
10:59
liberal movement which is racist lays a
11:01
fairly liberal movement is quite strong
11:02
in Germany the time wait I was smashed
11:04
was my patriotic military national front
11:08
kind of thing where Bismarck split the
11:10
two and also of course using similar
11:19
techniques later to split the socialist
11:21
from the war game with Social Democrats
11:23
going long war effort also pile of
11:25
patriotic Patriotic Front the corn
11:31
intellectuals was for highly developed
11:32
land as I mentioned before discussions
11:34
Gustav Shamar the great German historian
11:37
economist University of Berlin the clay
11:40
of the task of professor to the
11:41
University to be pro the intellectual
11:43
bodyguard on the House of Hohenzollern
11:44
repeat that and I think it’s a great
11:46
it’s beautiful short summation and we
11:51
have a PhD man ship and an arrest and we
11:57
have the people excellence my German
11:59
doctor
12:07
and another thing about the
12:09
intellectuals of time like also touched
12:11
on they they rejected lays a fare these
12:14
new progressive intellectuals a fear for
12:17
reasons we pointed toe from yesterday
12:19
and rejected Marxism as being too messy
12:22
too revolutionary to proletarian well if
12:25
you really strictly voluntary I’m not
12:27
much rubric we’re on to lecture you have
12:29
to really you have to really shuffle the
12:30
cards a lot that’s about the calm on
12:33
tahime thesis that it’s okay for it to
12:35
be intellectual you know you’re not a
12:37
worker because intellectuals are
12:38
free-floating there above class
12:39
determination some kind of rise above a
12:41
float above a levitate above the class
12:44
struggle but that’s really kind of you
12:46
know it’s kind of chancy so if you’re a
12:51
boy you want electoral your Marxism
12:53
looks pretty messy and more chances and
12:56
so he we find this third way is way as a
12:58
national state apparatus etc
13:08
and we find this fortuitous coincidence
13:11
so to speak
13:12
these Lumina lecture was coming up
13:13
influenced by German fertilizing ivy in
13:16
welfare state ideas and we find
13:18
businessmen happy also aiming us
13:20
direction we Henderson has happy fusion
13:22
in these two groups happy future
13:24
intellectuals seeking a statist and
13:26
businessmen seeking intellectuals it was
13:28
you know more was coming together of
13:31
these two these two groups also edition
13:34
that they have a state apparatus have to
13:35
have technicians after people actually
13:37
planning have them intellectual stamping
13:39
the bureau’s planning the economy and
13:41
and giving money to the poor and a lot
13:43
stop see you live Ivan what you’ll do
13:45
this and so you need experts or
13:48
technicians you begin to have the idea
13:49
which permeates the progressive period
13:51
and later on you don’t hear it so much
13:53
anymore I’m maybe in just the last few
13:55
years that happily is going out of it
13:57
but the idea is you need experts and the
13:59
key thing you have politics is messy yes
14:02
sir on this as we’ll see later permeates
14:04
thinking and urban urban progressivism
14:06
useful for most of us to politics is
14:10
very messy yes it’s it’s it’s corrupt
14:13
and it’s it’s people buying folks and
14:16
it’s chanting someone so on but we need
14:18
to replace all those messy political
14:19
conflict from experts experts will
14:21
levitate above the political struggle
14:23
will take things out of politics is
14:26
perfect in as a little time it is a
14:27
problem York subway system or something
14:29
take it out of politics remove it from
14:32
the will the post office take it out of
14:33
politics but actually means the court
14:35
use it’s still on a government hands
14:36
except now you can’t vote about it
14:38
you can’t even vote do anything about
14:40
you can’t get rid of it if they prepare
14:41
the permanent carbuncle on the system
14:44
isolate it insulated for any kind of
14:46
political action I’m not fan of politics
14:48
but the thing is the one good thing
14:49
about politic we least the voter can
14:51
have some kind of influence getting rid
14:52
of those but now this is this is
14:54
eliminated you say take it out of
14:55
politics put it into the hands of the
14:57
experts who turn out to be these
14:58
aggressive types technician the surgeons
15:01
suffer and so this thing at the the new
15:04
intellectual the progressive
15:05
intellectuals are pushing push this very
15:06
hard the idea of taking things out of
15:08
politics taking foreign policy out of
15:10
politics bipartisanship take the streets
15:13
out of politics take a post over that
15:15
causing some pretty soon before there’s
15:16
nothing a motive back except which
15:17
painting of clowns is gonna do this
15:20
and to do this so all the issues are
15:22
taken out of the public hands so this
15:30
becomes I say our continuing theme in
15:33
all of it among all these new
15:34
intellectuals the internet well yeah I’m
15:41
one of them the cocoa is trying to
15:42
conservatism each other book the one
15:46
criticism that my friends my old friend
15:48
Marty Sklar as a distinguished your
15:50
father erratic left historian money as
15:53
far as one criticism of the cocoa but
15:55
was entitled so instead of being the
15:56
triumph of conservatives we should have
15:57
been a triumph of liberalism and it sort
16:01
of highlights the fact is not really too
16:03
much difference I think it’s arisen
16:05
liberalism get right down to it it
16:07
certainly I think I think he’s right I
16:08
think the term corporate liberal is
16:10
beautiful actually in Williams term is a
16:13
beautiful in law term full of a funny
16:16
intellectuals and the businessman who
16:17
were pushing major theoreticians or even
16:20
minor theoreticians for this corporate
16:21
state kind of system I mentioned the
16:26
neat him quote about pitfalls and won’t
16:28
repeat that at the glory of a ancient
16:31
China you’re giving making poets and
16:34
scholars into officials oh here’s the
16:35
histogram here’s a quote need him says
16:39
called the successive pepper Chinese
16:41
emperors were served in all ages by a
16:43
great company for finally humane and
16:45
disinterested scholars I love that
16:46
before and he says the civilization
16:49
which professors with fog was so
16:50
bitterly attacking was one which could
16:52
make poets or scholars into officials
16:55
the intellectual for planet suffer but
16:59
yet the expert of technician becomes
17:00
another great term beautiful Thermage
17:02
probably comes in in this period maybe
17:04
later the social engineer a technician
17:08
he’s an engineer planning people
17:10
shuffling around like need the regular
17:13
engineer the non social engineers move
17:15
shuffling stones around or shuffling we
17:17
preserve authenticity
17:19
social engineer shuffling around people
17:25
and this sort of brings merriment really
17:29
leaping ahead a lot but it makes me one
17:31
of my use the term professor Rico likes
17:37
to use and my second just about my
17:39
second favorite person
17:40
my first favorite person to be you know
17:42
some Charles Manson or Spock or whatever
17:46
his name is
17:47
thank you Richard Speck second favorite
17:49
person the second face nice to be the
17:55
favorite person of twenty centuries Rex
17:56
for a guy hug well sort of embodies an
18:01
enormous amount of this stuff and and
18:04
one of the great social in the great
18:05
social engineer I was a mine was enter
18:07
of the right wing so this big there was
18:09
only there always quoting this great
18:10
poem I come on which I brought her up
18:11
with me I’m sure he won’t seen it it
18:14
goes something like I shall he’s he
18:16
tongue well speaking of course for his
18:18
class
18:20
I shall roll on ice lady I shall gather
18:22
my charts and my compasses I shall roll
18:24
up my sleeves I shall make a maraca over
18:26
really really grabs you in the back and
18:30
so it’s so how long does follow social
18:33
engineers is followed Technic rats as it
18:35
was so cold rolling up their sleeves and
18:38
making everybody over which is really
18:40
personal
18:41
I’m answer to so this of course the
18:44
honey wine for the Newman to let you
18:45
listen here my my goddess before this
18:47
what could they do like it they could be
18:48
ministers teaching humane or moral
18:51
philosophy and some small college
18:54
somewhere here they’re making America
18:55
Oliver it’s it’s really how do you whine
18:57
if you wonder why and why to attend the
18:58
beacon status of use there’s right there
19:01
a james Gilbert or the right interesting
19:03
book just come out that six months ago
19:06
called designing the industrial state
19:08
which I’ve also mentioned my bring
19:09
tomography read deals largely these
19:12
progressive intellectuals their
19:13
so-called collectivism and he shows the
19:15
collectivism deal ranges from what we
19:18
call after what we call right through
19:19
while coming from from industry
19:21
industrial people to socialist and so
19:24
forth it really doesn’t make much
19:25
difference we were saying almost the
19:27
same thing and he we talked about the
19:32
collectivist intellectuals Gilbert says
19:34
that what they’re engaged in was quote
19:37
the effort to make room for themselves
19:38
as a Markoff a function which would be
19:40
their own specialty and justification
19:43
publicist an economic determinism the
19:45
intellectuals so to speak and many of
19:50
these people found let’s see how the
19:55
corporation family structure the
19:57
corporation was there was was their
19:58
model except they wanted to make a
19:59
compulsory in universal Charles
20:01
Steinmetz the famous engineer working
20:02
for General Electric felt the whole
20:04
world should be one vast General
20:05
Electric constituting the government so
20:07
the government has General Electric and
20:09
vice versa and the remote many other
20:12
people have very similar views in this
20:14
period so we have these expert we have I
20:19
think I have a note here that certain
20:22
Tolman 1909 first yield the phrase
20:24
social engineers I might have been a man
20:25
earlier we have economists changing if
20:29
socialism science of sociology in quotes
20:31
popping up the very similar views and so
20:33
on and so on the so to the collectivist
20:37
intellectuals there would be the
20:38
intellectuals they the end of these
20:40
intellectuals would form these social
20:41
engineers we they form these experts
20:43
these foremost cast of technicians
20:45
technic France destined to formalize all
20:48
classes they’re above the classes you
20:50
have the idea also the state as being
20:52
the umpire of everything but therefore
20:54
they after all can see clearly in deeply
20:55
being bigshot intellectuals they can
20:58
roll up their sleeves and make us all
21:00
over they can harmonize big business and
21:02
big labor and all other groups in this
21:05
one great you know harmonic I walk with
21:07
all kind of structure and as social
21:11
scientists it’s another thing the idea
21:12
of social science has determined as
21:14
determining giving you the right and the
21:16
license on the privilege the mole every
21:18
money also force comes in as part of
21:20
this whole picture because he have
21:22
scientific social engineering it’s not
21:23
just your values not just the Tugwell is
21:25
trying to tell us about to do because
21:26
he’s he’s necessarily more clearly in
21:31
the rest of us mere force pushes around
21:36
the and they were above politics we
21:40
shouldn’t even consider them tarred with
21:41
a political brush and subjective voting
21:43
at the election they should be a
21:45
permanent part of the American structure
21:49
so as Gilbert puts it I think it was a
21:52
very neatly quote occupying a position
21:54
above the dialectic of social struggle
21:56
they felt able to judge the aspirations
21:58
of the other classes so they’re
22:00
levitating up there as free-flowing
22:02
intellectuals
22:05
I mean here many of these people are
22:10
kind of fascinating could be a whole
22:12
bunch of studies devoted there are so
22:14
these vote of these people maybe need
22:15
more study so the idea of the scientific
22:18
expert the efficiency expert etcetera
22:20
fitting in as planner and organizer and
22:22
theoretician the forest mentioning the
22:24
John Comyn
22:25
John John our comma is one of the key
22:26
people on this whole effort very
22:29
interesting figure of the person with a
22:32
student of Richard T Ealing is one of
22:34
the guys was influenced by Germany on
22:36
the first anti lays eggs fair americans
22:38
gets his PhD in germany comes back for
22:41
this new message of welfare state kind
22:44
of system just commons devoted students
22:49
of ealing johns hopkins those follows
22:51
Ely to Wisconsin becomes the founder of
22:53
one of the cofounders of the so-called
22:54
Wisconsin idea which now permeates the
22:57
rest of ism from then on Wisconsin idea
22:59
formulating all sorts of stuff
23:01
unemployment insurance home insurance
23:02
Social Security the whole stuff all
23:05
these things start on Wisconsin and then
23:06
permeating outward all from becoming
23:08
ruling himself extremely influential
23:11
person extremely if you watch over the
23:14
AF of out because his whole theory of
23:16
labor unions in such as a result theory
23:18
you know II reckon science the idea that
23:22
you have labor unions carving out
23:24
monopoly situation I’m playing Monopoly
23:26
systems areas usually craft unions which
23:30
many of the role the involves thing
23:34
keeping our lower types is one of the
23:37
things about the things that gives us
23:39
craft unions Utah’s Union power power to
23:42
raise wage raise your keeping out low
23:44
types low times being the unskilled
23:46
minority races and so forth
23:48
so we have this this thing will enter is
23:50
the a of evolved thesis commonly being
23:54
written on the great audio not an
23:55
audiologist but activist and writing
23:58
working out legislation of all sorts in
24:00
Wisconsin a common cat was a
24:06
distinguished corporate test 1899 common
24:09
delivers a paper from American Economic
24:11
Association and sets forth his thesis
24:14
some detail so the Congress we shouldn’t
24:17
have us political Congress nothing again
24:19
legally intimations trailing clouds of
24:22
glory of fascism later on Congress
24:24
should not be messy and have voters from
24:26
geographical district Congress should be
24:28
consistent representatives of organized
24:29
economic classes labor unions are like
24:32
their representatives and bankers like
24:34
JP Morgan when we mentioned specifically
24:36
Mia Morgan Miami bus I think is very
24:38
interesting should like their
24:42
representatives and the Trust’s you
24:43
recognize should like their represented
24:45
you won’t favor of troubles and the
24:48
railroad said like they represent on the
24:49
farm boxer if they represent us then we
24:51
all band together well The Economist and
24:52
I think they represent it that’s really
24:53
cute one over there I find out a special
24:55
personal grabber economist I’m like
24:58
they’re represented he mentioned eally
25:00
of course is one of the people should be
25:01
the first you know gotta being like that
25:02
one economist obviously an implicit
25:04
thing is that he would be in a second
25:05
and with the economists running this
25:08
whole show running Congress as new
25:10
powers of America occupation we then
25:14
have broad – patriotic compromises
25:17
unquote between all these groups
25:18
engineered by the economists points the
25:24
room happy with this survey and again he
25:30
keeps on with us in 1908 he talks about
25:33
three major groups the society workers
25:36
capitalism and the quote public and they
25:38
again he’s one of the founders of his
25:40
whole here is a tripartite Commission
25:42
tripartite organization running
25:44
everything among specific things and
25:45
everything in representative unions you
25:48
know the representative a capitalist and
25:49
you have the rubdown of the so-called
25:50
public I always turns out to be somebody
25:52
like Commons some guy like that and they
25:55
run a briefing
25:58
the and they represent the so called
26:02
public representative represents the
26:05
nation’s society and science all wrapped
26:07
up and wouldn’t make a fool or wax the
26:10
workers in the capitalist ourself a
26:12
narrow self-interest it’s okay wasn’t
26:13
against offer endures but they were an
26:14
arrow when they liked they represented a
26:17
woman with them harmonizing and running
26:19
the whole show well as early as the
26:21
scientific sociologists of the promise
26:25
so uh so the public and these contrived
26:30
part icon our bureaus and commissions
26:32
and regulatory agencies but supposed to
26:34
the embody and progressive intellectuals
26:36
commanding the statements Ally
26:37
institutions as experts official science
26:40
as an academics performer government
26:42
agents mediation boards lawyers at
26:45
separate segments whole group
26:46
proliferation of new professionals
26:48
coming up as I said these these lecture
26:53
was where the public and close because
26:54
they floated high above a narrow so
26:56
selfish economic interest of these
26:58
narrower endemic classes as Gilbert says
27:05
quote in the frozen dialectics of such a
27:09
state the intelligentsia of thing them
27:12
and a technical experts seem to be the
27:14
national rulers so then you have this
27:22
whole idea of society as an organism all
27:24
this comes up from analyst begins to
27:26
proliferate that’s not science organized
27:28
giant machine example well the
27:32
collectivist virtual says quote that
27:33
this time society quote society is a
27:35
colossal machine of which we are all
27:37
parts and men of the most exact sense
27:40
are members one of another of course
27:43
there was somebody heading the Machine a
27:44
guy is when you have the Reichstag law
27:45
pipe is the social engineer social
27:48
mechanic and everyone of the social
27:53
organism kind of metaphor there’s always
27:55
a brain or a head of the social organism
27:57
therefore you have to have a you know
27:58
every newly developed organism has a
28:00
brain another head of the brain of the
28:01
state apparatus the government and these
28:04
guys staffing it ah
28:07
and Steinmetz in my mentions great
28:09
inventor and Karissa advocated a quote
28:12
powerful centralized government of
28:14
deeply competent men remaining
28:16
continuously in office
28:21
it’s book in the sixteen obviously see
28:24
it happy that this is one of them one of
28:26
the criticisms of socialism later on
28:27
becomes well you know you have this
28:29
great national plan you know the
28:30
socialist government’s developing its
28:31
five-year plan and it’s also set you
28:34
can’t have somebody mucking and looking
28:35
around with it you know like six months
28:36
for now you have an election they throw
28:37
out the plants and possibly have that
28:39
continuity and of course the way you
28:41
have kanuha T will listens and that is
28:42
not the either not have elections at all
28:44
or else have piddling elections for a
28:46
while you know Bolsheviks off criticism
28:48
with a very low level you know some
28:49
local level you throw out one no sub
28:51
Foreman and this this video this this
28:53
thing also begins to for us to permeate
28:55
literature now the Alliance being it
29:05
being a conspiracy theorist that I’m
29:06
Morgan by a bolused
29:07
I can’t resist this Cobra Crowley who is
29:11
one of the great surprise everybody I
29:13
think those are bad but he’s one of the
29:14
great theoreticians of the Teddy
29:16
Roosevelt new nationalism and very much
29:18
in the spirit progressive in the
29:20
collectivist intellectual was set up
29:23
earn his mission life or see physician
29:25
lies and wife is another great new to
29:27
weekly journal which we all love them
29:29
Revere and they were Republic ah I mean
29:32
look what break he look of rates and
29:35
infuses from then on and late trying to
29:37
users will see later he becomes a great
29:40
loora loora Toora petitioners fascism
29:43
and from good reason if it all fits in
29:46
those kind of the thing I want to point
29:48
out is the theme the magazine in the
29:49
Republic was only established by Willard
29:51
straight
29:52
Morgan partner his son Michael destroy
29:57
her grandson wyvern laws continued on so
29:58
very recently as the publisher and the
30:01
New Republic I don’t I don’t see
30:05
coincidences okay we come now to the
30:13
couple of the organization’s of the
30:16
corporatists
30:20
one of the major organizations my old
30:22
friend James Weinstein has developed an
30:25
examiner’s but corporate idea in the
30:28
liberal state he knows he calls the
30:30
liberal state rather than the
30:31
conservative state following one with a
30:33
Squar analysis the National Civic
30:35
Federation Avex National Civic
30:37
Federation extremely important it dies
30:38
out on the twenties largely because the
30:40
brilliant organizer of this thing is
30:43
certain Ralph easily becomes a real hop
30:45
top red Vader by committed twenties it
30:47
becomes so extreme that they also leave
30:49
them and the organization dies out but
30:51
before the war before World War one is
30:53
its founded in 1900 before the war on
30:56
during the war it’s it’s the major
30:58
organization called cult of liberalism
31:01
it pushes inaugurates of all the great
31:05
welfare programs unemployment insurance
31:11
various social welfare monopolistic a
31:13
Federal Trade Commission a separate
31:14
sexual develop national Civic Federation
31:19
consists of many almost sorts of big
31:20
shots roster reads like a living the
31:23
imperfect shots at the time waltz is a
31:25
big businessman all sorts of trade union
31:27
responsible training leaders conference
31:29
of course being very high in the list
31:31
head of the American Federation of Labor
31:33
and public representatives including
31:36
corporate lawyers university presidents
31:40
newspaper publishers and cetera and they
31:44
had the National Civic Federation had
31:45
state council state Federation handle
31:47
handle problems of district level and so
31:49
forth the first president of the
31:53
National Civic generation is Marcus
31:55
Hanna the famous fossils Republican
31:58
Party for many years the fire and
31:59
Republican machine he leaves fairly
32:01
quickly is replaced by August Belmont an
32:04
international banker extraordinaire New
32:07
York and the the rest of the the rest of
32:09
the roster of the group organization the
32:11
site includes enormous numbers big shot
32:13
several Morgan partners reports
32:16
including George W Perkins will pop up
32:18
again and again in these these lectures
32:20
and judge Geary and Henry W Davison the
32:24
Morgan partner and his Excel igloo I
32:26
think
32:27
or Andrew Carnegie Charles Francis Adams
32:31
an initial Citibank Cyrus McCormick and
32:33
I want to know Jacob Riis John our
32:36
Commons of course he’s not big these
32:38
guys were so very rich strolling this
32:40
home there’s almost all the big shots
32:42
William Howard Taft Grover Cleveland was
32:45
wait 40 years Allah who wrote tunes
32:48
everywhere ubiquitous some corporate
32:50
political structure Morgan oriented take
32:55
loss Mary Butler my revered the from I
32:57
am named we are president Baum
33:00
University
33:01
Charles Eliot the or Benelli isn’t so
33:04
forth George W Perkins by the way and
33:09
this should be a Morgan partners also
33:11
director of United States deal
33:12
International Harvester
33:13
I seen strange coincidence this the
33:15
Morgans put them all together inclusive
33:18
mild oppas Impreza D is the operating
33:20
head of the Progressive Party of America
33:21
which is devoted to bringing freedom and
33:24
prosperity and public interest for all
33:26
of us
33:29
George W Perkins noted for example the
33:33
businessmen should be in our
33:35
unfortunately for him you know who we
33:36
both value statement in a special
33:39
statement those men should be in our
33:41
urging quote into the public official
33:43
member new public officials what’s now
33:46
known as the partnership of government
33:47
and industry against the purse develop
33:50
in this period many of the the you know
33:55
the National Civic Federation was
33:57
stronger probably on the bankers and
33:58
they were on the industrialists if you
33:59
want to equate these these things Henry
34:02
fortress agreement opposed to this group
34:04
and various others the Ralph easily put
34:08
a beautiful he’s one of the great
34:10
statements and we’re eight sentences in
34:11
the Weinstein book our enemies that
34:13
means the enemies of the National
34:14
Federation consensus this great centrist
34:16
consensus state monopoly capitalists
34:18
consensus which is developing our
34:20
enemies are the socialists among the
34:22
labor people means the left-wing Marxist
34:24
level Marxist socialist upon labor
34:26
people and the anarchists among the
34:28
capitalists unquote on the anarchists
34:31
among the capital T method essentially a
34:33
National Association of Manufacturers
34:34
which of those days represented largely
34:36
small business and we’re anti-union are
34:39
generally lazy fair rough
34:42
push the heifer roughly they were forced
34:45
: Turkish by these far these other new
34:47
corporates thing theoreticians the one
34:56
of the things they were pushing pike
34:57
early was was the welfare so they kind
34:59
of suck
35:00
really
35:04
and also they were pushing unionism this
35:07
is part of this whole to strip on tanto
35:09
Triple Alliance but the idea of raising
35:10
up unions as an important a responsible
35:14
part of this triple partnership junior
35:15
partnership in this Triple Alliance this
35:17
is a hot this is something for some many
35:19
businessman I could not swallow
35:20
I mean having born and bred an anti
35:22
unionism was very difficult for many of
35:23
them to accept the idea of suddenly
35:25
welcoming the environment into their
35:27
another picture but the International
35:29
Civic Federation definitely did the year
35:35
one of the things which the National
35:37
Civic Federation developed with the idea
35:38
that various issue the Warsaw should
35:40
quote be taken out of politics unquote
35:42
handled by experts non-politically and
35:50
one of the things they were pushing that
35:51
all problems are really technical
35:53
resolve my extra and extra political
35:55
means
35:55
well the coop collaboration of business
35:57
unions and government the one of the
36:02
things they were pushing were uniform
36:03
state laws on workmen’s compensation
36:05
before they got to the national scene
36:07
which it got to fairly quickly
36:09
in the early nineteen hundred’s are so
36:11
they were pushing your idea of minimum
36:12
wage laws workers compensation was and
36:15
public utility regulation and trial late
36:17
outlawing of child labor this is on the
36:19
early national civic fruition doctrines
36:29
the why do these business firm why do
36:33
you think this is my like minimum wage
36:34
laws
36:35
well for one things I said this is part
36:36
of a cauterizing process you’re imposing
36:38
higher costs on everybody including many
36:41
of your nasty rascally competitors like
36:43
small southern for example pay lower
36:45
wage rates if forced their wage rates up
36:47
you’re imposing higher costs on they’re
36:50
much more severely and you’re opposing
36:51
kind of coercing yourself as a matter of
36:53
factly the national minimum wage of
36:56
artisan sort of skipped in the current
36:57
period for bit per minute
36:59
one of the main law where the guys are
37:01
lobbying for custom a higher minimum
37:03
wage rate obviously unions are for very
37:05
good economic reasons because they’re
37:07
getting they’re increasing their pay
37:08
even though the expense of increasing
37:10
employment of marginal owner unskilled
37:12
workers we care much about the other
37:17
guys were lawman theoreticians look
37:19
liberal theoreticians will swords and
37:21
another group interesting group they’re
37:22
lobbying constantly for heuerman a
37:24
federal minimum wage rates more than
37:26
textile manufacturers New York in the
37:28
wing will be and Printers to who being
37:32
inefficient high cost worrying about the
37:35
competition of southern low-cost plants
37:37
want to impose this they know of course
37:39
prevailing wages are usually lower in
37:40
the south and they are here for one
37:42
reason
37:42
you know cost of living is lower they
37:45
want to impose higher wage rates on
37:47
their southern competitors this is the
37:48
way to do it it can’t ever they like to
37:49
have a protective tariffs they love to
37:51
have a high tariff or the Potomac and
37:53
keep out southern products it’s still
37:56
unconstitutional knew that so this is
37:59
this is the route indirect route by
38:00
which they do it posing higher cost in
38:02
their southern competitor
38:03
so the minimum wage an unnecessarily an
38:05
anti-business
38:06
proposal to all depends which business
38:08
of any foreign mentioned program which
38:09
businesses are doing it’ll and what
38:12
their what their interests happen to be
38:14
so National Civic Federation
38:16
you know creates gets the model
38:17
legislation written by people like
38:18
Commons and others and they then they
38:20
push it lobby for it so forth so on
38:27
workmen’s compensation laws another
38:29
thing they were pushing the common law
38:38
that stated that the employer can’t
38:40
employee if he suffers an accident
38:43
cannot receive compensation for employer
38:44
unless if there are if he’s assumed
38:48
they’re ineligible risk this is a part
38:50
of a knowledgeable assumption of risk of
38:52
the job if he contributes to the
38:53
negligence despise contributory
38:55
negligence he helped caused the accident
38:57
or if a fellow employee was really
38:59
responsible for servant doctrine the but
39:04
the labor unions wanted at the time was
39:06
to have them kind of employer liability
39:08
laws which would weaken these defenses
39:10
and the common law courts so they make a
39:13
collect employees could collect for
39:14
damages and so labor unions in those
39:20
days were opposed to workman’s
39:21
compensation law so they thought this
39:22
would be a way out this would be a and
39:24
what was conversation war after all
39:25
being paid for of the largest that one
39:28
workers themselves a paycheck
39:30
but they wanted was to have a free field
39:32
and collect from the courts so Angela
39:35
Civic Federation has an end run around
39:36
this and cutting your cutting in running
39:39
around this park promoting workman’s
39:40
compensation legislation and some of the
39:47
people who are pushing this fairly early
39:49
by 1911 for example were focused Belmont
39:52
and other industrialists the George W
39:55
Perkins Andrew Carnegie Otis Elevator
39:58
Company is open central sector the
40:05
pookums said about this and many other
40:07
things one another hope from Perkins
40:09
cooperation in business meaning cartels
40:13
and all these other things and the
40:14
government government intervention
40:16
government car inhalation is taking and
40:18
should take the place of ruthless
40:19
competition while we had so we had many
40:23
private business compensation plans
40:25
being developed and the smaller
40:29
businesses didn’t have the resources the
40:31
for voluntary plans and small business
40:32
were sucked in or induced I should say
40:34
to go along with the idea of working
40:36
with compensation who was so the even
40:38
the NA eminence that came out in support
40:40
of it and organized business there are
40:43
only a few quote narrow minded unquote
40:44
business men continue to oppose it and
40:47
so by 1911 we have state conversate
40:50
workmen’s compensation law in the sweet
40:52
ballz States National Civic Federation
40:54
took up the drive and earnest by 1908
40:56
1909 including especially August Belmont
40:59
was pushing a very heavily and my name
41:04
is mighty no not a force way to the AF
41:06
of L to remove their previous you know
41:08
opposition the men arms Easy Street they
41:13
also have another interesting group
41:14
which starts around this period
41:16
sergeant 1905 before in times around
41:19
1900 or so the American Association of
41:22
labor legislation it’s although on my
41:23
soul pet had outfits it consists of all
41:27
these not only didn’t like to only
41:28
economist corporate tests kind of
41:30
economist sociologist social workers etc
41:32
and only think businessman and a couple
41:35
million meters they were pushing they
41:37
begin to push so permanently they’re
41:38
devoted permanently wondering with teens
41:40
and twenties the social welfare
41:42
legislation minimum wage wars compulsory
41:45
unionization won’t sort cetera
41:54
and
42:02
nineteen nineteen eleven sort of a
42:04
slight hitch developed the New York
42:06
state workmen’s compensation law
42:07
declared unconstitutional by the pesky
42:09
courts the courts were no last vestiges
42:12
of truly a fair not corporate my
42:15
corporate test as the madman clued in
42:17
yet delivered see her bad and they
42:21
cleared this to the New York State comes
42:22
as an unconstitutional because of the
42:23
private this matter of property without
42:25
due process and this enraged Teddy
42:30
Roosevelt for example and the survey
42:33
magazine which is one of the leading
42:34
magazines of progressive intellectuals
42:36
said talking about this decision I think
42:39
is really cute it would have been
42:41
different
42:41
if it had been made by big businessmen
42:43
the problem is no way bigness is my
42:45
would have approved workman’s
42:46
compensation law a problem problem of
42:48
these reactionary old-fashioned judges
42:50
but some of a but they said if we really
42:53
have broad gauge businessmen with
42:55
responsibility for vast property
42:56
interest on their shoulders such as JP
43:00
Morgan Jacob Schiff eh Gary Andrew
43:02
Carnegie and John J hell who ever been
43:04
much better they would have approved it
43:07
and the major critic of the size
43:12
decision which part was of the case of
43:14
hide-and versus South Buffalo Railway
43:16
Company major Craig of this was Frances
43:19
Lynn Stetson was a multi-organ lawyer
43:22
who criticized the eyes decision
43:25
bitterly and tried to try to get a
43:27
federal compensation law unto Congress
43:29
he submitted a brief to Congress that I
43:31
will return this for little action so
43:33
turn I didn’t need because the New York
43:36
legislature will return this and amended
43:39
the state constitution to make workmen’s
43:41
compensation legal the empty seat begins
43:45
the arches the throat rate Commission we
43:48
start with bills such as the Hepburn
43:50
bill which introduced in the Congress
43:51
1908 it wasn’t passed yet was prefigured
43:54
the greatness to come some of leaders in
43:57
that were fascist lence that’s a Morgan
43:59
lawyer and Victor immoral Edison Beach
44:02
mentions distinguished Morgan railroad
44:05
lawyer why are associated with Morgan
44:06
own railroads the the Hepburn Bell which
44:10
is we say the predecessor the Federal
44:11
Trade Commission
44:12
was opposed by the National Association
44:14
of Manufacturers the Merchants
44:15
Association when you work on the Board
44:16
of Trade in New York we didn’t cut the
44:18
ice of them Morgan’s cut Frank Muncie
44:22
they’re revealing statement Frank must
44:24
even you newspaper publisher and the
44:27
Morgan yeah but for a lot of the
44:30
technical development January 1912 so
44:33
something up with actually the outlook
44:35
of him and colleagues he says quote Lee
44:38
said quote it is the work of a state to
44:40
think for the people and plan for the
44:42
people to teach them how to do what to
44:44
do and this is the sustain them in the
44:45
doing oh yeah
44:55
I have some folk song ends this lecture
44:59
goes more to go for us and progressive
45:01
period that’s more night but let’s
45:04
lecture so some quotations here from
45:08
Coco’s time conservators and I apologize
45:10
for repeating the quote that you’ve
45:11
already read I think it sort of
45:12
highlights some of the stuff
45:16
Koko’s says the progressivism the rest
45:19
of legislation aggressive ISM general
45:20
was quote the result not of any
45:21
impersonal mechanistic necessity but of
45:24
a conscious needs and decisions specific
45:26
minute and institutions
45:29
he also says progressivism is coding was
45:31
fully a movement from the political
45:32
rationalization of business and
45:34
intellectual industrial industrial
45:36
conditions the regulation itself quote
45:39
was invariably controlled by leaders of
45:41
the regulated industry and directed
45:43
toward and they deem acceptable or
45:44
desirable one of the things about coke
45:46
opening one of the things that he brings
45:48
to this is that almost everybody admits
45:50
now if you look at the internet of the
45:51
Interstate Commerce Commission if you
45:52
look at the CA B everybody says while I
45:55
controlled by the major firms in the
45:57
industry CA B is in twelve on a big four
45:58
Airlines I mean even the most loaded
46:02
adherence of these regulations agree to
46:05
this but what they say as well the
46:07
problem was its interior back in the
46:10
good old days in the Golden Age when
46:11
these regulations were first founded
46:13
such as 1900 1912 period then they were
46:16
great then they were put in by we only
46:18
bold the rustle of general welfare types
46:21
and really anti-big business but somehow
46:23
it got corrupted somewhere on one
46:26
like most old age these and these firms
46:28
took over the big railroads are the big
46:30
airlines whenever took over
46:32
well what Kokomo point sighs they didn’t
46:33
take over they already taken over from
46:35
writing anything they wrote the
46:36
legislation they lobbied for and they
46:37
loved it a very beginning so this counts
46:40
a complete new light on the school major
46:43
method of industrial regulation other
46:46
people of course have known similar
46:48
things George they’ll be hoping to the
46:50
ICC Paul McEvoy I see seeing other
46:52
people
46:55
Morgana’s cocoa cuts that he pulls as
46:57
political capitals which another good
46:58
word should’ve added this for the other
46:59
on live near about 24-hour consistent
47:04
quote of the equalization of political
47:05
outlets to attain conditions of
47:07
stability predictability and security to
47:09
attaining rationalization in the economy
47:11
I would call that cauterization another
47:13
little dustier work for no more precise
47:16
words for the same thing
47:29
now the fact he says when he talks about
47:33
the Morgan anywhere in stealing stream
47:34
or suppose being favored all these
47:35
things he says the fact that an Alabama
47:38
grocers might be opposed to some of
47:39
these things is really not important
47:41
because the guys were the political
47:42
influence on power
47:43
we’re not the Alabama grocers but the
47:44
people weren’t been mentioning the look
47:48
case because he says quote the group was
47:50
supported it consistently were quote the
47:51
men and the top echelons of Finance and
47:53
industry in other words the key power
47:55
suckers well I think this is a good
48:00
point to stop I will continue on Amara
48:02
night with more specifics and different
48:04
specific industries and therefore
48:06
specific laws and hopefully also the
48:09
local municipal municipal progressively
48:11
thank you okay I’m not going to go into
48:20
a little wider application of a Morgan
48:25
thing Abalos and explain why I different
48:31
a question I recognize a person that has
48:33
a sort of dumb-dumb legalism his
48:35
approach was the one that had to be in
48:36
the courts so that the question of
48:43
emphasis that’s doing his approach it
48:48
seems to me of the the one of the key
48:50
points of political history in this
48:52
whole period goes something like this
48:55
that isn’t that Johnny rockefeller is an
48:58
Ohio Republicans based in Cleveland who
49:00
is whole operation completely and the
49:02
Ohio Republican Party is essentially a
49:04
rockefeller party I don’t go quite as
49:08
far as I think those muckrakers can say
49:11
now someone saw parentheses Morgan so
49:13
it’s a Brotherhood caucus but but it was
49:17
a close symbiosis let’s say McCain in
49:19
Ohio Republican Party in the and rockin
49:21
Rockefeller and Standard Oil ambit and
49:25
we realize the Ohio Republican Party is
49:27
extremely important in this whole period
49:29
look McKinley was a higher Republican
49:31
mark Hannah was a political voice of the
49:33
entire party as well as Ohio as a final
49:35
Republican Warren Harding is a higher
49:38
our time for the high Republicans I
49:40
regard I look at this whole McKinley
49:44
tact Harding instead was essentially in
49:47
the Rockefeller Emmett
49:53
the McKinley administration for example
49:59
McKinley well first of all was highly
50:01
indebted to senator hanan the great
50:03
force of the whole party one things but
50:05
can we had been saved from bankruptcy by
50:06
more cannons
50:07
a ball from hound Hanna heavily to get
50:09
out of it and my hat was more like this
50:12
political bosses mentor theoretician and
50:15
whatever lip you later etc why can’t it
50:18
turns out this pops up quite a bit more
50:22
kind of turnout who’ve been an old high
50:24
school classmate and close friend of
50:27
john d rockefeller senior so going
50:29
through nutball kind of first of many
50:32
coincidences long speaker of a house
50:37
extremely powerful speaker sort of the
50:41
bosses not like now or the speaker sort
50:43
of yellow first among equals extremely
50:45
powerful speaker during this period was
50:46
Seeger Thomas Reid
50:48
which means that have been an old friend
50:50
of Henry H Rodgers who was in the
50:51
Rockefeller M but one of the Rockefeller
50:53
families I’ve mentioned before Franklin
50:55
is market fellas I mean perhaps etc one
50:57
of those was the Rogers is Tom planted
51:00
was the Republican voice of New York
51:01
State turn out have been turn out to
51:03
have been an old schoolmate of Johnny
51:04
Rocco for senior at Owego high school
51:07
somewhere here somewhere as the others
51:11
classmates I’m how popping up senator
51:14
nelson w old regim forests mention this
51:16
morning also turns out to a
51:18
father-in-law of john d rockefeller jr.
51:21
kinsman Rockefeller family Aldrich
51:27
discover put down a whole rich the end
51:31
of the Senate 1881 of the Marley well
51:34
wholesale grocer a 30-year died thirty
51:36
years later something like twelve
51:38
million dollars
51:44
McKinley is also an important oh hi oh
51:49
Republican senator senator joseph for
51:50
who’s on the payroll and walking fall
51:53
direct a rule in the Kinley cabinets
51:57
there was Secretary of State John
52:02
Sherman was a higher Republican exactly
52:04
before walketh all a person sees he’s an
52:06
old-timer but still he’s in a higher or
52:08
republic in which which means something
52:10
secondary Treasury lineman J gage it was
52:12
very close the National City Bank which
52:15
was William Rockefeller when he walked
52:19
all was the Brotherhood on Iran
52:20
tolerance the truth was some certain
52:22
splits there I you know I figured and
52:24
for both were good for all purposes we
52:26
sort of together a bit ambassador to
52:29
Great Britain and McKinley illustration
52:32
of Joe Choate the attorney for Stanton
52:34
Oil Company New Jersey and so we have we
52:38
have a certain heavy heavy propensity
52:40
your other people are from other groups
52:42
to McKinley camera but basically the
52:45
wait it seems to me is on the sign of
52:47
the Rockefeller interest the McKinley
52:56
has the McKinley wanted the raghava’s
53:01
did not want Teddy Roosevelt to be vice
53:03
president kennedy administration was
53:04
considered in the Morgan nment and quite
53:07
properly and they wanted they but they
53:16
were forced to accept I figure I have a
53:18
piece of more enrollment so McKinley has
53:20
the Republican nomination as the
53:22
Rockefeller person and Teddy Roosevelt
53:24
got the vice presidential nomination and
53:26
and McKinley is assassinated Teddy
53:29
Roosevelt suddenly pops off as president
53:31
when we get the Teddy Roosevelt TV we
53:36
get somebody was extremely in the Morgan
53:38
ambit nor the security case wraps up
53:41
even the spine anomaly from there he
53:46
first of all he was sore at Rockefeller
53:48
to it’s all become are all trying to
53:50
block his vice-presidential nomination
53:51
push the line on Wassily Teddy Roosevelt
53:54
asked for Rockefeller edition of that we
53:57
have a first great booster of Teddy
53:58
Roosevelt turns out to be our old pal
54:00
who will
54:01
while we talking about cotton three
54:02
completely lectures George W Perkins
54:05
Morgan partner and other people even old
54:14
friends of Teddy Roosevelt Elihu root
54:16
who’s almost ubiquitous in this whole
54:18
period whose Wall Street lawyer of
54:22
Thomas fortune Ryan weakened
54:24
considerably from New York who was more
54:27
or less in the Morgan M but how long who
54:31
become Secretary of War in the Secretary
54:33
of State has read the Papua I
54:34
mean extremely important I like hearing
54:39
this period worked from Morgan for
54:40
example if we organize equitable life
54:41
insurance company and so I consider him
54:44
I think pretty well Morgan he also was
54:47
Morgan’s agent for Chinese investments
54:49
during this whole period during part of
54:51
this period he becomes Secretary of
54:53
State in 1905 the appointed Assistant
54:55
Secretary of State Robert bacon who old
54:59
friend of Teddy Roosevelt was also a
55:00
Morgan partner you see it could mean
55:03
either two interpretations here all
55:07
these guys are picking the best men
55:08
available so I’m out of a big hat and
55:11
somehow by coincidence all these Morgan
55:13
types of take in one administration
55:15
rockefeller price to pick another
55:16
administration listen to this the
55:18
statistical probabilities is happening
55:20
or almost zero or you know some some
55:22
more personal direct connections that’s
55:27
the hypothesis I’m going on also
55:32
Postmaster General in the teníamos
55:37
administration was certain doors fun
55:39
elmire
55:40
coming from the inhalant we all Colin a
55:42
Trust Company in Boston essentially an
55:44
agent of Morgan Secretary a navy was
55:47
pull more thing from I could have my
55:48
life which I’ve already talked about in
55:50
the morning him but Herbert out family
55:52
assistant secretary of the Navy was her
55:54
turn out to be Morgan’s son-in-law to
55:55
you closer
56:03
and the the hand-picked successor
56:06
something went wrong – Teddy Roosevelt
56:09
me Teddy Roosevelt’s hand-picked
56:10
successor before he selected the tap
56:11
with other Hugh and Nellie he was very
56:14
bitter but not having gotten he probably
56:17
deserved it the Attorney General under
56:20
Teddy Roosevelt would watch whatever
56:21
trust-busting was undertaking this
56:24
calendar see knocks Louise Lee coming
56:27
from western Pennsylvania was a Carnegie
56:29
steel lawyer and who essentially Frick
56:34
melih
56:34
and we’ve heard about Frick being sort
56:37
of outline to the Morgans this period of
56:39
the u.s. steel situation so forth so we
56:43
have these thing meantime we have the
56:46
Roosevelt administration okay and the
56:50
Sherman Antitrust – enacted as we know
56:52
them has hardly been used at all during
56:53
this whole period in Cinelli just before
56:58
I get to that forward to that my view of
57:03
the Antitrust Act you say well I’m
57:05
saying it the present state of the
57:07
caramelizing of Rights
57:08
how come antitrust of all it even kept
57:11
in a formal sense because it seems to be
57:12
in opposition to it what I’m saying is I
57:15
think forest tentative that this morning
57:17
also is that the antitrust act becomes
57:20
with advice not an anti business advice
57:22
per se when a device by which one
57:23
businessman or groups of businessman
57:25
club or the other group in other words
57:29
is the device used by one side of
57:30
businessmen you engage in monopolistic
57:32
privileges or subsidies that add to
57:35
cripple the competition we see now of
57:37
course this is done all the time even
57:39
openly you have these private antitrust
57:40
suits well doesn’t have a recent IBM
57:43
case for IBM was a suit was been brought
57:47
against IBM on Antitrust Division as
57:49
monopolies this case was brought by the
57:51
control Data Corporation competing
57:53
computer unfit and other allied computer
57:56
and that’s an obvious attempt to cripple
57:58
a large and successful competitor so and
58:02
Lowell makes in his great book the
58:03
language of the center thing is called
58:04
talking about experiences the Federal
58:07
Trade Commission ISM as a custom one man
58:09
lays a fair minority Federal Trade
58:10
Commission fifties and sixties and was
58:13
keeps talking about all these cases at
58:15
least most of these cases are brought by
58:17
feeding businessmen want to clobber a
58:18
successful opposition they don’t like
58:19
the fact this guys having rebates the
58:21
stylus pen the other thing so outlaw it
58:23
stop it I’m saying here the past I mean
58:27
the Teddy Roosevelt launching a modern
58:31
antitrust policy so sweet
58:34
business is part of the same pattern
58:36
except on a larger scale because as far
58:42
as Teddy Roosevelt a trust buster but
58:45
what he did is seems to me he brought he
58:47
tried a bust and did successfully bust
58:49
one trust the trust happened to be
58:51
Standard Oil Company in New Jersey so in
58:55
other words we break this sort of fairly
58:57
happy such a rage panic peaceful
58:58
coexistence in the business world
59:00
politically it suddenly ruptured a
59:03
savage attack launched on San everyone
59:05
by by Teddy Roosevelt why did he do it I
59:11
hear I think I feel I’m frying ground by
59:15
saying that this is why he did
59:16
essentially Morgan impact on Rockefeller
59:20
opening up a great titanic struggle for
59:23
quite some time between the Morgan
59:24
intrested market or Chris’s which I feel
59:26
goes down for many years thereafter why
59:30
was this launch I don’t know I can only
59:31
hear I can really go be very spiky
59:33
lelouch and I think too much of none of
59:35
this let me say it seems to me not
59:39
purely a coincidence but around this
59:41
time wrong who knows the early nineteen
59:43
hundred’s we begin to have a titanic
59:45
struggle on a worldwide scale for
59:47
international oil markets and
59:49
international oil investments in oil
59:51
concessions between sparkling new jersey
59:53
in one hand rockefeller interest in one
59:55
hand and royal dutch/shell on the other
59:57
well that show was a fusion between the
60:00
British shell transport and trading
60:03
company and the Royal Dutch company
60:04
which were existing before 1907 then
60:07
they were merged formally 1907 which was
60:10
essentially a giant organization fuel
60:14
and in the ambit of the famous and truly
60:20
powerful Rothschild interests but we
60:22
have is essentially the wrong child in
60:24
just this world that’s shown the one
60:25
handily expanded
60:27
our interest on the other way he a
60:29
fantastic struggle beginning around the
60:31
sphere and continuing off a long time at
60:34
least as late as my teacher I know in
60:36
the late nineteen twenties this seems to
60:37
us to be almost inconceivable it’s
60:38
really have sort of pitch yourself to
60:40
really believe it several books were
60:42
written by reputable journalist around
60:43
1929 1930 actually predicting war
60:46
between United States and Brett to be
60:47
physical war military constantly because
60:49
of this great oil struggle that she’ll
60:54
struggle and why why I am speculating is
60:59
that the Morgan attacked I’m Morgan
61:02
Teddy Roosevelt what straining attack
61:04
I’m standing over to break it up might
61:06
have had something to do with the
61:07
Rothschild Rothschild and world that
61:10
show war would stand alone on the
61:12
international front otherwise when I
61:15
posture lighting is essentially a Morgan
61:16
Rothschild tie-in at least to this
61:18
extent and any right I’ll tell you guys
61:25
about launches this history intact
61:27
the Rockefellers the Morgans are very
61:29
happy with Teddy Roosevelt of course
61:30
throughout Teddy Roosevelt runs for
61:34
reelection the Morgans and I mean
61:40
everybody in there Iran but boost him
61:43
and so forth was give money to his
61:44
campaign and they’re very happy with
61:46
whole situation for all Rockefeller of
61:48
course I’m not very happy in Rockefeller
61:51
broke his long-standing and ties the
61:53
Republican Party at least for one
61:55
campaign to support poor old judge olden
61:57
H Crocker the Democratic candidate for
62:00
president making for Judge Parker is
62:03
hardly good competitively Teddy
62:04
Roosevelt charismatic style and settings
62:08
clobbered
62:16
the well the Huey Hammonds the Morgans I
62:21
think much stronger than the
62:22
Rockefellers and pushing the National
62:23
Civic Federation kind of thing as I
62:28
think I sort of mentioned in passing the
62:29
Rockefeller wasn’t very happy with the
62:31
entry to World War one just about the
62:32
only large business corporate leader it
62:36
was at least benevolently not neutral or
62:39
malevolent malevolently neutral the idea
62:47
what then with what then would tap or
62:51
prevent to some kind of fluke Ruth Elihu
62:55
root the designated successor said he
62:57
was not the designated senator William
62:59
Howard Taft takes over when our tap my
63:02
Pasha is essentially a Rockefeller
63:04
person me in a Milan Republican it
63:06
starts launching a huge antitrust
63:08
campaign against who don’t use antitrust
63:10
campaign against two giant Morgan
63:12
companies the biggest antitrust campaign
63:14
United States Steel Corporation and
63:16
they’re the International Harvester so
63:18
so I interpret the Taft antitrust
63:21
campaigns not this is not only a so
63:23
legalistic dum-dum legalism but also the
63:26
great Rockefeller avenging us the
63:27
Morgans I was using antitrust I okay you
63:30
did this to me I’m gonna smash you boy
63:32
and lashing out perfectly perfectly
63:36
reasonable understand when when Teddy
63:44
Roosevelt started objecting very
63:47
vociferously and that was the split
63:48
split a big business with tap comes
63:51
comes as soon as he starts more genies
63:53
attacks aus deal International Harvester
63:56
and passeth have a dumb dumb way I must
64:02
admit accuses Teddy Roosevelt out the
64:05
Morgan on the steel trust because Teddy
64:07
Roosevelt opposing this antitrust
64:09
actually didn’t he should’ve known that
64:12
he was gonna solo a long time ago any
64:15
right
64:22
tap and marching this attack
64:24
International Harvester denounces this
64:25
Teddy Roosevelt Morgan Alliance so comes
64:31
the comes 1912 campaign have to have one
64:35
term of office and what is the react
64:37
forces as far as mentioned this morning
64:39
the usual interpretation of the story
64:41
ends and the taps of the turbulent ten
64:43
heroes are great for liberal progressive
64:45
today on campuses horrible business
64:47
reactionary who support staff
64:50
re-election not big business us for sure
64:52
it’s not only that they don’t support
64:54
tax reelection
64:56
they launch a new party him into the big
64:59
speaking of big headache in which a new
65:01
cornea nation weren’t scared of course a
65:03
lot of money costs a lot of energy they
65:05
want you do party Progressive Party the
65:07
express purpose of Smashing William
65:08
Howard Taft letting him back to the
65:10
showers and ensuring ensuring the
65:14
reelection Woodrow Wilson ah big
65:19
business and think those in the Morgan
65:20
him but particularly was very
65:22
enthusiastic about the Teddy Roosevelt
65:24
campaigns this great progressive
65:25
campaign 1912 George W Perkins of course
65:29
was a head of the whole Progressive
65:30
Party Morgan partner Frank mumsy
65:32
newspaper publisher Morgan him buttons
65:34
another big shot Teddy Roosevelt
65:36
campaign but there are lots of
65:38
McCormick’s whole bunch of McCormick
65:40
people and Coleman family Judge Gary
65:42
naturally and and we have we heavenly
65:52
the Progressive Party leadership Russell
65:56
for the enormous number of large
65:57
businessman corporate lawyers few
65:59
professors and editors and big business
66:04
support on the other hand for William
66:05
Howard Taft was almost nil we have he
66:07
has of course to a Republican Party
66:08
machine and well you know he’s our
66:10
president he really like them response
66:14
and just about the only big business
66:16
planning for Taft were well aware Elihu
66:19
root who was disgruntled of the
66:21
Roosevelt not selected him be a
66:22
successor and nothing done behind
66:24
senator nelson w old rich and
66:27
rockefeller ambit so
66:30
and we were support running by this time
66:32
the party machinery for all the poor old
66:35
Rockefeller had loosening mark adams for
66:38
present for the presidency against half
66:40
and we shouldn’t just tell you roosevelt
66:43
before times like that and my kind of
66:46
died there was no candidate so we have a
66:53
campaign where had virtually no support
66:56
the among his leadership some of the
67:01
interesting things about the the rest of
67:03
party 1912 petty Rose was backed by 90
67:08
percent of the Union League of Chicago
67:09
keep returning George W Perkins was it
67:17
was I’m gonna see was very much with
67:19
ardently in favor of federal I see trade
67:23
tight Commission and Frank munzee
67:29
newspaper publisher was had invested
67:30
very heavily personally in u.s. deal
67:33
International Harvester and other moving
67:34
companies you know concerns the
67:39
leadership of the press reporting or in
67:40
the cocoa with big business main
67:41
corporate lawyers and generally is a
67:44
very high concentration of upper class
67:46
urban wasp Republicans white anglo-saxon
67:50
Republicans Teddy Roosevelt calls during
67:53
the campaign for National Industrial
67:55
Commission similar to the ICC to
67:56
business theme across being pumps up
67:58
continuing now to do for big business in
68:02
general what the ICC did for the
68:04
railroad to the railroad before them to
68:06
event over capitalization in the worst
68:08
of a strict competition the rest of
68:11
party platform demands strong national
68:12
regulation corporations a federal
68:14
Commission similarly on sec to attack
68:16
what attack on fair competition
68:17
whatever the businessman talked about an
68:19
unfair competition what they mean is
68:20
quote when the meaning the effective
68:22
competition on where you can cross out
68:24
of the unfair put another effective
68:30
speak
68:32
professor party platform said quote
68:34
bustling business bus with this new kind
68:38
of Federal Trade Commission the
68:39
businessmen will have certain knowledge
68:41
of the law the investor
68:42
we’ll find security for his capital
68:43
dividends will be rendered more certain
68:45
under such a system of constructive
68:47
regulation legitimate business we turn
68:50
confusion uncertainty and fruitless
68:51
litigation will develop normally but as
68:54
the party cited Germany openly the our
68:57
deal example during Germany quote their
68:59
policy of cooperation between government
69:01
and business has a comparatively few
69:03
years made them a leading a competitor
69:05
for the Commerce of the world unquote
69:07
end quote
69:08
the time has come when the federal
69:09
government should cooperate with
69:10
manufacturers and producers extending or
69:13
following commerce the Republican Party
69:19
– also called for Federal Trade
69:21
Commission because we go Susie and in
69:22
less detail okay the the Morgans have
69:31
their revenge for this aberration we
69:33
have a smash incredible clobbering of a
69:37
major Party presidential candidate we
69:39
have the election of the good grey it
69:41
could say Woodrow Wilson sort of ranks
69:46
in my view somewhere along with the
69:48
Reichstag wall so he’s more important
69:50
even my to my cat pose of favorites of
69:57
course as always been held up as an
69:58
anti-business and my strong anti
70:00
business progressive forces Jeffersonian
70:03
type he who were his main sponsors in
70:09
this where they weren’t as illustrious I
70:10
will admit as the sponsors of Teddy
70:12
Roosevelt but the year they still a they
70:14
think they cut a pretty good swath for
70:16
example donors classmate Cleveland dodge
70:19
more important magnetic calm provides
70:21
other things the stylization McCormick
70:24
there’s an old pal it was George W
70:28
Harvey president of Harper Harper
70:30
Brothers and Harper’s Weekly
70:31
big publishers which was essentially
70:34
controlled by Morgan in the Morgan but
70:36
how much fortune Ryan was a service is
70:38
heavily involved here and then and we
70:44
came to his fortuitously around this
70:46
time we have a zoo son-in-law William
70:47
Gibbs McAdoo
70:48
I was very important from now through
70:50
the twenties who is a longtime associate
70:52
of the Ryan interest in New York City
70:54
utilities and
70:55
at least the Morgan Ally MacNeill have a
70:59
strange career during the very extremely
71:02
important
71:08
all those in favor of Wilson ranking 12
71:11
was Jacob chef you movin company Henry
71:14
Lee Higginson the great Boston magnate
71:17
Cleveland Dodge by the way was
71:18
associated associated National City Bank
71:21
of New York for sure and Bernard Baruch
71:26
as mentioned before I mention again the
71:28
internationally David B Jones of Thomas
71:31
Jones International Harvester company
71:33
which is essentially Morgan
71:36
Henry Seligmann Wall Street of the bank
71:38
international banking firm and and JP
71:40
Morgan whistles I like the day P Morgan
71:42
writes to somebody and so expresses a
71:43
great friendship and so forth and fellow
71:48
so I think something here we have a
71:50
great ploy where the big business
71:52
magnates originally and usually a
71:53
Republican band together to smash this
71:57
that’s my Morgan upstart and and pack
72:00
them away and then ensure the election
72:07
Wolfson quite but quite early I think I
72:12
think it’s interesting it was a first
72:14
grade professor and I should be warning
72:18
to all of us he was like.he twelve in
72:23
the campaign express himself in favor of
72:24
government regulation a reasonable
72:26
competition reasonable combination
72:28
same-same very much and most his most
72:35
precise speech just full of speech I was
72:37
subject Business Regulation during the
72:39
campaign he came out in favor of
72:41
government preventing
72:43
price-fixing and control of war material
72:46
and what and it all finds cutthroat
72:48
competition this case cutthroat is the
72:50
same as unfair ie effective
72:52
Custer a guest customer competition and
72:54
over capitalization queens in favor of
72:56
restricting the government Carter lysing
72:59
assist assist the system so as to reduce
73:01
reduce productive strict reduction and
73:06
and our competition moderator speaking
73:11
these are a similar views which madam
73:15
which he admits Reef single muses with
73:18
perkins in advocating for quite some
73:19
time
73:22
naturally after the election Gerald
73:25
Professor Jeremiah W Jenks of National
73:27
Civic Federation distinguished economist
73:29
of this current University a big big
73:31
money in corporatists says while now as
73:34
a campaign is over what a little things
73:36
like that we should get on with a
73:37
constructive work stabilizing the system
73:40
so the forecast of things to come
73:49
probably KOCO has this section of
73:54
material on federal charges the Federal
73:56
Trade Commission German so summarize a
73:58
bit here
74:00
the Lilly in 1908 to two people have
74:06
been pushing the idea of a Federal Trade
74:07
Commission or her state regulation
74:09
Francis Linton steps in and I mentioned
74:11
before JP Morgan’s personal attorney the
74:13
victim our what’s the beach in town
74:18
a railroad attorney for Morgan from
74:20
Morgan railroads they drafted a bill
74:23
called the Hepburn bill I mentioned the
74:24
heifer I’m going I want to assure ten
74:26
table was enough ahead for an act and
74:28
which he’s a specialist mara this is a
74:30
firm built for Federal Trade Commission
74:33
to allow the bill to allow corporations
74:35
to register the federal government to be
74:37
informed whether the proposed any
74:39
proposed actions a merger is we were
74:42
illegal and and this they are sets in
74:49
and more and more what’s rate in their
74:50
effort by Judge Gary George W Perkins
74:52
Isaac solidly Augustus Beaumont Samuel
74:55
Gompers Jeremiah W Jenks and JP Morgan
74:58
himself participated but Teddy Roosevelt
75:03
interestingly enough turned it down I
75:07
was a Morgan proposal it turned it that
75:08
for an interesting reason because to
75:10
pro-union interesting when you break
75:15
progressive because one of the proposals
75:18
was that
75:19
unions from the antiphon Sherman Act and
75:22
so that the the bill goes into abeyance
75:25
for a while and under the Taff of course
75:28
the whole thing you know the whole
75:30
Morgan ambit disappear they have to go
75:31
through wait until Wilson
75:33
I’m its president means not one of the
75:39
most interesting people is hoping author
75:41
J Eddie Chicago corporate corporation
75:44
lawyer who was one of great
75:46
theoreticians of trade associations
75:47
eliminating unfair competition
75:49
competition period leading cartels
75:52
allocating markets allocating quotas for
75:55
each firm fixing prices and the words
75:58
raising prices and so forth the 1912
76:00
Eddy wrote a very important book called
76:01
new competition sort of the manifesto of
76:04
this movement where as I said before I
76:07
think competition he says competition is
76:09
war because he blazons this all
76:10
throughout the book in italics
76:12
competition is war war is now and
76:15
therefore we should you know in
76:16
competition more or less he wanted to
76:20
repeal the Sherman Act outright and to
76:22
pass a federal licensing law for
76:24
corporations enact the Federal Trade
76:26
Commission to govern trade associations
76:29
to to enforce price and market
76:31
agreements by industrial self-government
76:34
force cartel agreements to raise prices
76:37
restrict production is great as it’s a
76:40
very detailed outline of the corporate
76:41
state oh shut up and interestingly
76:44
enough that used as a sort of what we
76:46
often would consider to be less laying
76:48
out for Less rhetoric times he says
76:49
competition is selfish and we should
76:51
therefore restrictive in favor of
76:53
absolutely an altruistic world of
76:55
cooperation and cooperation sort of the
76:58
other way the code word for the question
77:00
for Cardinal organization competition he
77:03
first was in human and piratical and
77:07
destruct us the stable prices and wasn’t
77:09
self-destructive the high price quote
77:14
from Eddie competition free and
77:15
unfettered is absolutely destructive to
77:17
all stability and prices before the
77:19
interstate commerce more sleep for the
77:21
railroads regulating railway rates
77:23
competition reigned
77:24
to a certain extent the railroads from
77:26
time to time cooperated the control
77:28
conditions Mike rules and associations
77:30
but
77:30
until a government stepped in and call a
77:32
halt the vicious competition where rates
77:34
regulated in any permanent manner which
77:36
sets forth lococo faeces or is it in
77:41
functioning on Interstate Commerce
77:42
Commission and any study has he says he
77:46
wants my justified he has another letter
77:48
he says something is he says he wants
77:50
legislation leases effective for general
77:52
industries the RTC was the railroads or
77:56
he won’t so moved in the course of the
77:58
book hailed hey all this but he called
78:01
the more philosophical socialists my
78:05
mother cement the right wing socialist
78:06
first line and in the United States the
78:11
more conservative socialists with
78:14
surfaces of doing what’s administration
78:16
later who we’re a favor of the trust as
78:20
a forerunner of socialism have the trust
78:22
the trust is great because we have those
78:24
have a government take it over and of
78:25
the only socialism so here’s a favor of
78:27
these guys because they were in favor of
78:29
the when he was in favor at least for
78:30
the least in the short run and he says
78:35
interesting enough for the only class in
78:37
the country that would never benefits
78:38
for free competition on the non
78:40
producers will have fixed income do they
78:42
want more prices so interesting
78:45
interesting statement because I thought
78:47
all consumers want more pricing
78:49
consumers everybody but he didn’t look
78:51
at it that way or chose another look at
78:52
it that’s right when the 1915 edition of
78:57
the book came out originally in 1912
78:59
1915 edition Eddie hail the new Federal
79:02
Trade Commission one right happens he
79:03
one of the people who contributed to
79:05
writing it hails the new Federal Trade
79:07
Act especially section 5 which outlawed
79:10
quote unfair methods of competition
79:11
unquote and he says this will lead
79:16
uniform prices will in the reign of
79:17
cutthroat competition will lead to
79:19
things like fair trade or resale price
79:23
maintenance which comes in of course
79:24
later and force
79:33
when the Federal Trade Commission’s
79:35
finally passed it turns out that one of
79:39
the very few people attacking and on
79:40
individualist groundless on the boar I
79:42
was probably one of the very few at
79:45
least outstanding individuals
79:46
progressives and also his message 90/14
79:53
message to Congress close for this for
79:56
something like Trade Commission says
79:58
which will ensure no more no further
80:00
antagonism between government and
80:01
business and generally most business
80:06
groups Heil Heil and more deleon to the
80:08
Federal Trade Commission the Chicago
80:10
association of Commerce and the National
80:12
Cheney he watched chamber of commerce
80:14
one of the people especially susie
80:17
asking about this was Thomas Cray it was
80:19
the attorney for Cudahy meatpacking
80:21
company the one of the few business
80:24
groups that really strongly opposed the
80:25
Federal Trade Commission with the New
80:29
York State Chamber of Commerce and
80:30
Philadelphia force the niam was split
80:33
uncertain divided than we take the
80:35
strong stand where the other
80:43
come to the Federal Trade Commission is
80:45
cold 27 federal law was vague enough for
80:51
outlawing unfair competition the Clayton
80:54
Act which comes along with it out
80:55
annoying this price discrimination she
80:56
gets a noir rebate for the general
80:58
rebate questions the law was vague
81:05
enough of course the to have the
81:07
composition of the cover photo for a
81:09
commission be very important clues in
81:10
the on whose would be interpreting this
81:11
is whether they give this hopeful
81:13
document corporate this point of view
81:20
the chairman the head of the Federal
81:22
Trade Commission first head of those
81:23
dues of a Davies corporation where’s
81:25
who’s had been head of the Bureau of
81:28
corporations which for instance
81:30
intervention and joseph filippi Davies
81:34
pops up much later
81:36
Mergen farm policy as ambassador of
81:39
Soviet Russia and the awful thing miss
81:41
buck mission the must go this is much
81:43
much later for which he was attacked by
81:44
the right-wing the Communists I don’t
81:47
think that his general outlook changed
81:49
much from one these are different
81:52
conditions really right so he was the he
81:57
was the head of the Federal Federal
81:59
Trade Commission Thomas creme I
82:00
mentioned before of Ankara he was in
82:02
rubric another member was George Roble
82:05
is a corporation lawyer and one of them
82:08
one of the major factors of the bill and
82:11
Gilbert Montagu Merchants Association
82:13
New York Federal Trade Commission has
82:16
set out Lord unfair competition and
82:18
quite an act
82:20
price discrimination and also in the
82:22
Clayton I got side unions were not
82:23
illegal it was exactly exactly antitrust
82:25
lack but it was sort of step in that
82:27
direction and was puzzle of a plate
82:31
enact would make it possible for trade
82:32
associations of voluntarily stabilize
82:34
prices
82:35
harass that again detailing the
82:40
acquisition keep on mentioned this time
82:42
you’ll Gompers the American Federation
82:43
labor courses foots right in with their
82:44
point of view Francis Lynne Stetson was
82:46
one of course they were morgan lawyers
82:48
when the original their attentions of
82:50
all this author j eddie
82:51
mentioned and come to the Commission as
82:57
I say excuse me
83:02
these were not the Federal Trade
83:03
Commission these are some of the people
83:05
favoring pushing it one of you rudely
83:07
crazy a second Federal Trade Commission
83:10
comes in and the Joe Davies was the
83:12
chairman why she was a key figure on the
83:14
commissioners Edward and early of
83:16
Chicago was they manufacture Illinois
83:18
presently Illinois Manufacturers
83:19
Association and one of the founders of
83:21
pneumatic tool industry remember he was
83:23
on it was nominated by the chicago
83:28
association of Commerce also had been a
83:30
lawyer the rest of the leader the
83:32
Progressive Party most of the beginning
83:34
and I say Chamber of Commerce I also
83:37
want to little Perry a ship fuller and
83:39
William Harris the Georgia businessman
83:42
he’s with the commissioners also
83:47
secretary of commerce during loose
83:48
administrations are very important but
83:49
you’re William C red field would firmly
83:51
did President Lee American manufacturers
83:54
export Association as the these are iron
83:57
steel manufacturing a longtime advocate
83:59
of corporate test business government
84:01
cooperation system especially a foreign
84:04
foreign trade and also a longtime
84:06
advocate encouraging trade associations
84:11
baby is working out the guidelines and
84:13
the specific details of her trade
84:15
commission is aided and abetted by
84:17
Arthur J Eddy again right in there if
84:20
the Booker D Heinz railroad executive
84:22
becomes important later on but but
84:24
tomorrow what’s a little friendly we’re
84:26
returning CEO of an highs of US Chamber
84:29
of Commerce
84:31
business was generally highly enthused
84:34
about the whole thing it was about the
84:35
appointment and about the war now listen
84:38
so this is helping does this is the
84:41
great thing the baby says quote there’s
84:45
a great opportunity for this new agency
84:47
in government to be a
84:48
practical agent business of this country
84:49
that is indeed that isn’t he one of the
84:51
purposes for which it was created
84:58
maybe he’s pretty soon shifts to the
85:00
Foreign Affair that’s about a year or so
85:02
shifts with a great task
85:03
preparing the world Germany and this
85:06
leads Hurley as the sort of a key figure
85:08
in the in the Federal Trade Commission
85:10
Hurley is beloved and it comes with Coco
85:12
describes the great love affair
85:15
organized business and then curly curly
85:20
for example totally association of
85:23
national advertisers in December 1915
85:25
quote through a period of years the
85:27
government has been gradually extending
85:28
its machinery of hopefulness then he
85:31
mentions the railroads have shippers
85:33
have the ICC the bankers have a Federal
85:35
Reserve System to the time the farmers
85:38
have in the form of Agriculture and now
85:40
quote to do for general business that
85:42
which these other agencies do for the
85:43
groups to which I have referred was the
85:46
thought behind the creation of the
85:47
Federal Trade Commission listening read
85:50
this and fully supported this this
85:53
interpretation of the origins and nature
85:55
for a commission I think we got all
85:59
these things which pops up a lot it
86:01
might have popped up earlier American
86:02
history and I just gloom dawns of us
86:05
here pearly for example by 1916 is
86:08
grafting Wilson’s speech praising her
86:10
Lee and her Lee’s actions of turtle
86:13
speak image Hoover did a lot of us later
86:15
on though he’s wrapping stuff up Wilson
86:17
the phrase when we’re going Hoover is
86:20
and Hurley tells a national vestry or
86:23
conference board a draw 1916 quote I do
86:25
not know anything about the law and that
86:27
applies to the Clayton Act and the
86:29
Federal Trade Commission Act
86:30
my position on the Federal Trade
86:31
Commission on there as a businessman
86:33
when I was over the place I told the
86:35
president that all I knew was business I
86:36
know nothing about the new laws or the
86:38
old ones then I would apply the force
86:40
that I might have in the interest of
86:41
business I think of the businessman of
86:43
this country will bear me out when I say
86:45
that I try to worked wholly in the
86:46
interest of
86:55
the Federal Trade Commission is now
86:58
pushing also directly for surely
87:01
Africans daughter for car towels price
87:03
fixing perfect especially wrecks for
87:05
trade associations for competition it
87:09
was one of the major forces behind the
87:10
webb-pomerene act April 1918 which allow
87:13
export trade association games
87:15
essentially the federal government
87:16
promoter behind them and Wilson put at
87:20
the photo taken in 1916 the Federal
87:22
Trade Commission has transformed
87:23
government governmental United States
87:24
from being an antagonistic business and
87:26
to being friends of business Koko’s has
87:28
a little bit of exaggeration because
87:30
they weren’t really an antagonist the
87:31
business before that anyway but this is
87:33
the way Wilson chose to see it but this
87:36
is the way Wilson chose to see it but
87:38
this is the way Wilson chose to see it
87:40
but this is the way Wilson chose to see
87:43
it but this is the way wasn’t chose to
87:45
see it but this is the way wasn’t chose
87:48
to see it but this is the way wasn’t
87:51
chose to see it but this is the way
87:54
Wilson chose to see it this is the way
87:57
wasn’t chose to see it this is the

Murray N. Rothbard Quotes

It is by no means self-evident that patents encourage an increased absolute quantity of research expenditures. But certainly, patents distort the type of research expenditure being conducted. For while it is true that the first discoverer benefits from the privilege, it is also true that competitors are excluded from production in the area of the patent for many years... Moreover, the patentee is himself discouraged from engaging in further research in this field, for the privilege permits him to rest on his laurels...Murray Rothbardhttp://www.readrothbard.com/quotes… (next quote)